Filing Flows › Arhaus (ARHS) › Takeover & LBO
Is Arhaus (ARHS) a takeover target?
A leveraged buyout at today's price plus 30% ($16.18 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 4.1% of companies with its figures were bought within a year (0.81× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $16.18 | today's $12.45 plus 30% |
| × shares | 142.3 million | |
| = Equity value | $2.3B | |
| + Debt refinanced | $0 | |
| − Cash | $318M | |
| = Enterprise value | $2.0B | 14.4× EBITDA of $138M |
| Fees | $39.7M | 2% of the price |
| New debt | $760M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.3B | 62% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.5B | $145M | $58.1M | −$11.4M | $771M |
| Year 2 | $1.6B | $152M | $59.0M | −$9.8M | $781M |
| Year 3 | $1.6B | $158M | $59.8M | −$8.2M | $790M |
| Year 4 | $1.7B | $164M | $60.4M | −$6.6M | $796M |
| Year 5 | $1.8B | $169M | $60.9M | −$5.0M | $801M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 10.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.8B | |
| − Debt left | $801M | |
| = Buyer's equity | $975M | |
| Money multiple | 0.77× | on $1.3B put in |
| Buyer's yearly return (IRR) | −5.1% |
Price against return
What the buyer makes at other premiums over today's $12.45.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $13.70 | 1.6% |
| 20% | $14.94 | −2.1% |
| 30% | $16.18 | −5.1% |
| 40% | $17.43 | −7.6% |
| 50% | $18.67 | −9.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.4B | |
| EBITDA, last 12 months | $138M | 9.6% of revenue |
| Depreciation and amortization | $51.5M | |
| Capital spending | $77.5M | |
| Debt | $0 | |
| Cash | $318M | |
| Share price | $12.45 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 5.2% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 29% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Arhaus would cost about $16.50 a share, $2.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $14.94 | $2.1B |
| Median | 32.5% | $16.50 | $2.3B |
| High end (a quarter paid more) | 51.8% | $18.90 | $2.7B |
The odds, from history
Historically 4.1% of companies with its figures were bought within a year (0.81× the average). Its figures put it in decile 4 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Arhaus' latest quarter
Arhaus, Q3 2026: revenue $368M (+7% year over year), operating margin 2.7%, net earnings $7.8M, operating cash flow $113M. The chart follows the revenue to costs, profit and cash.
Questions
Is Arhaus being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Arhaus?
A leveraged buyout at today's price plus 30% ($16.18 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Arhaus cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Arhaus would cost about $16.50 a share, $2.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.